Factors Affecting Social Entrepreneurial Orientations: Moderating Role of Government Support

Abstract

In the face of globalisation expanding trend, social entrepreneurship and social entrepreneurial orientation (SEO) are regarded as the key economic development strategies to advance an organisation’s performance and eventually a country’s economic growth and sustain its competitiveness. This study aimed to explore the factors that affect the SEO of non-profit organisations (NPOs), as well as the moderating effects of government support in enhancing the SEO of NPOs. To meet the study's objectives, the two-step cluster analysis and structural equation modelling (SEM) were utilised. The moderator of the study was classified into three clusters; access to both government financial and non-financial support, access to higher government non-financial support only and access to lesser government non-financial support only. The study was conducted among one hundred and ten NPOs in the Ampara district of Sri Lanka, where data were collected from owners or managers of the organisations. The findings of this study noted a significant positive relationship between organic organisational structure and organisation size with SEO. Organizations that engage in earning activities, receiving other organisations’ financial support and individual donations show comparatively higher SEO. Organisations with male owners/managers have higher SEO than those with female owners/managers. In terms of the moderating effects of government support, findings revealed significant moderation characteristic of government support. Most of the direct relationships are moderated when both governments financial and non-financial support is available to the NPOs. Government support accelerates the association of organic organisational structure and social networking with SEO. Organisations involved in earning activities, organisations receiving other organisations’ financial support and individual donations show a higher SEO when the moderating effect of government support is present. The findings of this study provide a clear indication to researchers and policymakers about the effectiveness of the current government support designed and implemented to support NPOs in Sri Lanka.

Keywords: Social Entrepreneurship, Social Entrepreneurial Orientation, Non-Profit Organisation, Government Support